Taco Bell Calera (Birmingham MSA)

Taco Bell Calera (Birmingham MSA)

Taco Bell Calera (Birmingham MSA)

OFFERING MEMORANDUM Taco Bell Calera (Birmingham MSA) CALERA, AL

Taco Bell Calera (Birmingham MSA)

CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.

The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CALERA, AL Taco Bell Calera (Birmingham MSA)

Taco Bell Calera (Birmingham MSA)

NET LEASED DISCLAIMER Taco Bell Calera (Birmingham MSA) CALERA, AL Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks.

Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions.

Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Taco Bell Calera (Birmingham MSA)

Section 1 PRICING AND FINANCIAL ANALYSIS Section 2 PROPERTY DESCRIPTION Section 3 DEMOGRAPHIC ANALYSIS TABLE OF CONTENTS Taco Bell Calera (Birmingham MSA)

Taco Bell Calera (Birmingham MSA) CALERA, AL PRICING AND FINANCIAL ANALYSIS

FIRST TRUST DEED Loan Amount $1,120,000 Loan Type Proposed New Amortization 20 Years Program 15-20 Year Am Loan to Value 70% Annualized Operating Data 121 Supercenter Drive Calera, AL 35040 Price $1,600,000 Down Payment 30% / $480,000 Rentable Square Feet 2,500 Price/SF $640.00 CAP Rate 6.74% Year Built 2003 Lot Size .65 +/- Acres Type of Ownership Fee Simple Location Financing Loan information is time sensitive and subject to change.

Contact your local Marcus & Millichap Capital Corporation representative. Rent Increases Annual Monthly Based on October 4 2013 Rent Increase $107,907.84 $8,992.32 October 4 2018 Increase $118,698.60 $9,891.55 1 Base Rent ($43.16/SF) $107,908 Base Rent Growth Rate Year 5 10.00% Net Operating Income $107,908 Net Cash Flow After Debt Service 22.48% / $107,908 Total Return 22.48% / $107,908 PRICING AND FINANCIAL ANALYSIS Tenant Trade Name Taco Bell Ownership Private Tenant Tacala LLC Franchisee Lease Guarantor Franchisee Guarantee Lease Type Triple Net (NNN) Roof and Structure Tenant Responsible Lease Term 20 Years Lease Commencement 10/04/2003 Rent Commencement 10/04/2013 Lease Expiration Date 10/03/2023 Term Remaining on 10+ Years Increases 10% Every 5 Years Options Three (3) Five (5) Year Options Taco Bell Calera (Birmingham MSA) CALERA, AL Tenant Summary This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.

References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 NOI is based on a rent increase with a commencement date of October 4, 2013 FINANCIAL OVERVIEW

2 PRICING AND FINANCIAL ANALYSIS Taco Bell Calera (Birmingham MSA) CALERA, AL Property Name Taco Bell Calera (Birmingham MSA) Property Address 121 Supercenter Drive Calera, AL 35040 Property Type Net Leased Restaurant Fast Food Rentable Square Feet 2,500 Tenant Trade Name Taco Bell Ownership Private Tenant Tacala LLC Franchisee Lease Guarantor Franchisee Guarantee 500 Million in Capital Franchisee Guarantee Lease Commencement Date 10/04/2003 Rent Commencement Date 10/04/2013 Lease Expiration Date 10/03/2023 Term Remaining on Lease 10+ Years Lease Type Triple Net (NNN) Roof and Structure Tenant Responsible Lease Term 20 Years Increases 10% every 5 years 10% Every 5 Years Options to Renew Three (3) Five (5) Year Options No.

of Locations 225 Units Headquartered Birmingham Alabama Web Site www.tacala.com Franchisee Profile: Years in the Business 23 Other Concepts Owned Sonic This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc.

2013 Marcus & Millichap U0700011 This Taco Bell is operated by Tacala LLC. Tacala is one of the the largest operators of Taco Bells in the country. At the end of 2012, Altamont Capital Partners, a private equity firm based in the San Francisco Bay Area, acquired majority ownership in Tacala. Altamont selected Tacala as their first investment in the restaurant industry based on the strong company leadership which has remained in place, as well as the company’s proven track record. Altamont has $500 million of capital under management and is focused on investing in middle market businesses where it can partner with leading management teams to help them reach their full potential.

Their principals have significant experience building business success stories across a range of industries, including financial services, consumer/retail, industrials, healthcare and business services. TENANT OVERVIEW

Taco Bell Calera (Birmingham MSA) CALERA, AL PROPERTY DESCRIPTION

Marcus and Millichap is pleased to present this NNN free standing Taco Bell operated by Tacala LLC. Tacala is one of the largest operators of Taco Bells in the country, primarily focused in the southeast and Missouri. The remaining base term of the lease expires on October 3rd, 2023. There are three, five-year options to extend the lease, which includes 10% fixed increases every 5 years. This is a "Bold Choice" design which is Taco Bell's latest design concept. Situated on an outparcel to Walmart Super center which draws traffic from the surrounding areas and is adjacent to I-65.

There is a new Publix center within 1/4 of a mile of subject property. Located in Shelby County which continues to be one of the fastest growing counties in the country.

  • YUM Brands, the franchisor, is the world's largest restaurant company with over 35,000 stores in 110 countries and with more than $12.6 billion in worldwide revenues in 2011. Taco Bell is the nation's fifth largest QSR and dominates the Mexican segment. Taco Bell generated sales of $6.8 Billion in 2011. This offering is a great opportunity for an investor to acquire a management free asset with an attractive yield from one of the largest and most experienced operators in the country. Investment Highlights
  • Operated by TACALA
  • 10% Rent bumps every five years
  • 10+ Years remaining on initial term
  • NNN
  • Outparcel to Walmart Super Center
  • Close to major interstate
  • Fastest growing County in the State of Alabama
  • Strong sales growth year over year 4 PROPERTY DESCRIPTION Taco Bell Calera (Birmingham MSA) CALERA, AL This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 INVESTMENT OVERVIEW

5 PROPERTY DESCRIPTION Taco Bell Calera (Birmingham MSA) CALERA, AL The Offering Property Taco Bell Calera (Birmingham MSA) Property Address 121 Supercenter Drive Calera, AL 35040 Assessor's Parcel Number 282-040-001-012.005 Zoning Commercial Site Description Year Built 2003 Rentable Square Feet 2,500 Lot Size .65 +/- Acres Type of Ownership Fee Simple This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 PROPERTY SUMMARY

6 PROPERTY DESCRIPTION Taco Bell Calera (Birmingham MSA) CALERA, AL This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 PROPERTY PHOTOS

Local Map Regional Map 7 PROPERTY DESCRIPTION Taco Bell Calera (Birmingham MSA) CALERA, AL This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.

References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 AREA MAPS

8 PROPERTY DESCRIPTION Taco Bell Calera (Birmingham MSA) CALERA, AL This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 SITE PLAN

9 PROPERTY DESCRIPTION Taco Bell Calera (Birmingham MSA) CALERA, AL This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.

References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 AERIAL PHOTO

Taco Bell Calera (Birmingham MSA) CALERA, AL DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles 2000 Population 415 4,724 9,751 2010 Population 598 10,507 18,662 2012 Population 620 10,738 19,189 2017 Population 685 12,743 22,290 2000 Households 164 1,782 3,618 2010 Households 239 4,154 7,169 2012 Households 247 4,233 7,352 2017 Households 279 5,130 8,691 2012 Average Household Size 2.59 2.62 2.62 2012 Daytime Population 550 3,191 6,289 2000 Median Housing Value $97,822 $94,161 $102,704 2000 Owner Occupied Housing Units 78.66% 77.62% 75.99% 2000 Renter Occupied Housing Units 11.66% 14.39% 15.62% 2000 Vacant 10.76% 9.55% 9.00% 2012 Owner Occupied Housing Units 72.16% 78.61% 76.69% 2012 Renter Occupied Housing Units 20.65% 14.37% 15.83% 2012 Vacant 7.20% 7.01% 7.47% 2017 Owner Occupied Housing Units 71.20% 78.71% 76.89% 2017 Renter Occupied Housing Units 21.42% 14.74% 15.97% 2017 Vacant 7.38% 6.56% 7.14% $ 0 - $14,999 5.0% 6.3% 7.8% $ 15,000 - $24,999 6.6% 7.5% 8.0% $ 25,000 - $34,999 10.6% 10.0% 10.6% $ 35,000 - $49,999 11.3% 11.9% 11.6% $ 50,000 - $74,999 19.1% 21.5% 21.3% $ 75,000 - $99,999 16.5% 18.0% 16.4% $100,000 - $124,999 15.3% 12.6% 12.5% $125,000 - $149,999 4.8% 5.6% 5.4% $150,000 - $199,999 4.5% 3.7% 3.7% $200,000 - $249,999 2.5% 1.2% 1.0% $250,000 + 3.6% 1.8% 1.8% 2012 Median Household Income $71,610 $66,124 $63,674 2012 Per Capita Income $37,193 $31,564 $29,630 2012 Average Household Income $93,509 $80,074 $77,229 Demographic data © 2012 by Experian.

11 DEMOGRAPHIC ANALYSIS Taco Bell Calera (Birmingham MSA) CALERA, AL This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 DEMOGRAPHIC REPORT

Geography: 5 Miles Population In 2012, the population in your selected geography was 19,189 . The population has changed by 96.78% since 2000. It is estimated that the population in your area will be 22,290 five years from now, which represents a change of 16.15% from the current year. The current population is 48.9% male and 51.0% female. The median age of the population in your area is 34.0 , compare this to the U.S. average which is 37. The population density in your area is 222.09 people per square mile.

Households There are currently 7,352 households in your selected geography.

The number of households has changed by 103.20% since 2000. It is estimated that the number of households in your area will be 8,691 five years from now, which represents a change of 18.21% from the current year. The average household size in your area is 2.62 persons. Income In 2012, the median household income for your selected geography is $63,674 , compare this to the U.S. average which is currently $53,535. The median household income for your area has changed by 56.95% since 2000. It is estimated that the median household income in your area will be $75,215 five years from now, which represents a change of 18.12% from the current year.

The current year per capita income in your area is $29,630 , compare this to the U.S. average, which is $28,888. The current year average household income in your area is $77,229 , compare this to the U.S. average which is $75,373. Race & Ethnicity The current year racial makeup of your selected area is as follows: 76.59% White, 17.35% African American, 0.24% Native American and 0.57% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96% Native American and 5.01% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 6.61% of the current year population in your selected area. Compare this to the U.S. average of 16.55%. Housing The median housing value in your area was $102,704 in 2000, compare this to the U.S. average of $110,781 for the same year. In 2000, there were 3,020 owner occupied housing units in your area and there were 621 renter occupied housing units in your area. The median rent at the time was $349 . Employment In 2012, there are 6,289 employees in your selected area, this is also known as the daytime population.

The 2000 Census revealed that 55.6% of employees are employed in white-collar occupations in this geography, and 44.3% are employed in blue-collar occupations. In 2012, unemployment in this area is 3.50% . In 2000, the median time traveled to work was 24.2 minutes. Demographic data © 2012 by Experian.

12 DEMOGRAPHIC ANALYSIS Taco Bell Calera (Birmingham MSA) CALERA, AL This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 SUMMARY REPORT

Average income of all the people 15 years and older occupying a single housing unit.

Demographic data © 2012 by Experian. 13 DEMOGRAPHIC ANALYSIS Taco Bell Calera (Birmingham MSA) CALERA, AL This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Atlanta, Inc. © 2013 Marcus & Millichap U0700011 AVERAGE HOUSEHOLD INCOME

CALERA, AL OFFERING MEMORANDUM Taco Bell Calera (Birmingham MSA) Offices Nationwide www.MarcusMillichap.com Presented By: Nathan Gustavson Senior Associate San Francisco Office License: CA: 01898316 Tel: (415)625-2176 Fax: (415)963-3010 Nathan.Gustavson@marcusmillichap.com www.marcusmillichap.com/NathanGustavson Eddie Greenhalgh Broker License: AL: 00008-8298 Tel: (205)747-3700 Fax: (205)747-3710